The European Commission proposed counter-tariffs of 25 per cent on a range of US goods on Monday in response to President Donald Trump's tariffs on steel and aluminium.

The tariffs on some goods will come into effect May 16 and others later in the year, on December 1, a document seen by Reuters showed. The goods are wide-ranging and include diamonds, dental floss, sausages, nuts and soybeans.

EU trade chief Maros Sefcovic said earlier on Monday the counter-tariffs would impact less than the previously announced 26 billion euros ($28.45 billion). Bourbon, wine and dairy have been removed from the original list the Commission was weighing in March. The Commission had earmarked a 50% tariff on bourbon, which had prompted Trump to threaten a 200% counter-tariff on EU alcoholic drinks if the bloc goes ahead.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu seeks to limit the sting of tariffs imposed on his country at a meeting with US President Donald Trump later in the day. Netanyahu was the first foreign leader to meet face-to-face with Trump since the president announced a sweeping tariff policy last Wednesday.

Under the new policy, Israeli goods face a 17 per cent US tariff. The United States is Israel's closest ally and largest single trading partner. During their Oval Office talks, the two leaders were also expected to discuss the 18-month-old war in Gaza and the fate of hostages taken from Israel and still held in the Palestinian enclave.

The outcome of the talks could signal to other foreign leaders whether Trump is willing to bend on the levies and how best to approach him. 

Trump's sweeping tariff plans hammered global financial markets and US stocks braced for more turmoil after he warned foreign governments they would have to pay "a lot of money" to lift the levies he called "medicine."

Trump discusses tariffs with foreign leaders
Trump economic adviser Kevin Hassett told Fox & Friends that Trump spent much of the weekend talking to foreign leaders on the phone about the tariffs. He did not provide names.

At the same time, US Trade Representative Jamieson Greer will tell the Senate Finance Committee on Tuesday that nearly 50 countries have approached him to discuss new sweeping tariffs imposed by President Donald Trump.

"Several of these countries, such as Argentina, Vietnam, and Israel, have suggested they will reduce their tariffs and non-tariff barriers," Greer said in written testimony seen by Reuters. "These obviously are welcome moves. Our large and persistent trade deficit has been over 30 years in the making, and it will not be resolved overnight, but all of this is in the right direction."

In a surprise move, Trump extended the invitation in a phone call on Thursday with Netanyahu when the Israeli leader raised the tariff issue, according to Israeli officials. An Israeli finance ministry official said on Thursday that Trump's latest tariff announcement could affect Israel's exports of machinery and medical equipment.

Israel had already moved to cancel its remaining tariffs on US imports last Tuesday. The two countries signed a free trade agreement 40 years ago and about 98 per cent of goods from the United States are now tax-free.